Microsoft is trying to keep its cash-strapped corporate customers by slashing the cost of their software leasing contracts by up to 26 per cent.

According to the Web site, MicrosoftIncentives.com until July 3, large companies and organizations can sign up to subscribe to Microsoft Office 2007, Windows Vista, or two bundles of client access licenses (CALs) for server software and save more than a quarter off the list price. The saving could be as much as $40 a seat.

Cutting maintenance or support contracts with software vendors has become a hobby for corporates looking to save cash and this is hurting Microsoft's bottom line.